Question

A contractor agreed to build 30 temporary sheds in 90 days at a price of Rs. 10000/unit. Twenty days later, the contractor has finished 8 sheds with an actual total cost of
Rs. 85000. What is the status of the project?
1. The project is time and cost overrun
2. The project is time overrun and cost under run
3. The project is time under run and cost overrun
4. The project is time and cost under run

Answer 1

Correct Answer - Option 3 : The project is time under run and cost overrun

Explanation:

∵ Contractor agreed to build 30 sheds in 90 days

means 1 shed complete in 3 days 

Price of 1 shed is Rs. 10000

So, 8 Shed complete in 24 days while contractor take only 20 days means the project is time under run.

Price of 8 shed = 8 × 10000 = 80000, whlie contractor has finished 8 shed with an actual cost of Rs. 85000 means the project is cost overrun.